Why Lodha Developers Ltd is a Top Real Estate Stock to Buy Now
Jefferies has highlighted Lodha Developers Ltd as a prime beneficiary of Mumbai’s $80 billion infrastructure upgrade, with a large 4,500-acre land bank and a 20% CAGR in presales expected. The brokerage assigns a ‘Buy’ rating with a target price of Rs. 1,625, implying a 43.93% potential upside.
Real EstateLodha DevelopersMumbai InfrastructureJefferiesStock MarketReal Estate MumbaiOct 09, 2025
Jefferies has assigned a ‘Buy’ rating to Lodha Developers, with a target price of Rs. 1,625, implying a potential upside of 43.93 percent from its closing price on 8th October 2025, Wednesday. The brokerage highlighted the company as a major beneficiary of Mumbai’s extensive infrastructure development, including the upcoming second international airport, which forms part of an ongoing $80 billion-plus transformation expected to elevate real estate values.
Lodha’s sizable 4,500-acre land bank on the city’s outskirts positions it well to capitalize on this growth, with land prices having increased nearly eightfold over the past four years. The brokerage expects Mumbai’s strong market performance, coupled with Lodha’s geographic expansion, to drive a 20 percent compound annual growth rate in presales. Jefferies also noted that recent market concerns over a soft first half have made the company’s ex-Palava business particularly attractive, as it currently trades at roughly 2x EV/sales.
For Q2FY26, Lodha reported pre-sales of Rs. 4,570 crore, representing a 7 percent year-on-year increase and a 3 percent sequential rise. Collections for the quarter stood at Rs. 3,480 crore, up 13 percent from the same period last year. The company anticipates a stronger pace of launches in the second half of the year and has reaffirmed its full-year bookings guidance of Rs. 21,000 crore. Net debt rose sequentially by Rs. 300 crore to Rs. 5,370 crore, driven by record business development in H1FY26 and ongoing project approval costs.
Quarter-on-Quarter: Sales declined from Rs. 4,224 crore to Rs. 3,492 crore, a decrease of 17.3 percent. Operating profit fell from Rs. 1,220 crore to Rs. 984 crore, down 19.3 percent. PBT dropped from Rs. 1,186 crore to Rs. 904 crore, a decline of 23.8 percent. Net profit slipped from Rs. 923 crore to Rs. 675 crore, down 26.9 percent.
Year-on-Year: Sales rose from Rs. 2,846 crore to Rs. 3,492 crore, a growth of 22.7 percent. Operating profit increased from Rs. 756 crore to Rs. 984 crore, up 30.2 percent. PBT grew from Rs. 651 crore to Rs. 904 crore, an increase of 38.9 percent. Net profit jumped from Rs. 476 crore to Rs. 675 crore, up 41.8 percent.
Lodha is one of India’s premier luxury real estate developers, focused on creating world-class residential, commercial, and digital infrastructure projects. The company has delivered approximately 100 million square feet and is developing over 110 million square feet across ongoing and planned projects. Lodha emphasizes integrated, self-contained ecosystems, robust infrastructure, and digital conveniences through its Bellevie platform, transforming resident lifestyles. Committed to net-zero carbon emissions by 2050, Lodha is leading low-carbon initiatives within the real estate sector, while expanding its growing digital infrastructure business.
Frequently Asked Questions
What is the target price assigned by Jefferies to Lodha Developers Ltd?
Jefferies has assigned a target price of Rs. 1,625 to Lodha Developers Ltd, implying a potential upside of 43.93 percent.
What are the key factors driving Lodha Developers' growth in Mumbai?
The key factors driving Lodha Developers' growth in Mumbai include the opening of the city’s second international airport and the company’s large 4,500-acre land bank on the outskirts, which positions it to capitalize on the ongoing $80 billion-plus infrastructure upgrade.
What is Lodha Developers' full-year bookings guidance?
Lodha Developers has reaffirmed its full-year bookings guidance of Rs. 21,000 crore.
What is the expected compound annual growth rate in presales for Lodha Developers?
Jefferies expects a 20 percent compound annual growth rate in presales for Lodha Developers.
What is Lodha Developers' commitment to sustainability?
Lodha Developers is committed to net-zero carbon emissions by 2050 and is leading low-carbon initiatives within the real estate sector.
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